The UK-based arm, Wren House of the Kuwait Investment Authority has agreed to purchase North Stream Midstream Partners (NSMP) from energy-focused private equity company ArcLight Capital Partners, it was reported on Tuesday.
In a statement, Wren House told that it agreed to obtain ArcLight’s complete stake in the firm. Though the firm has given no details of the transaction, various unnamed sources said Reuters that the deal is valuable roughly $1.7 billion, winning out bidders involving Blackstone and JP Morgan.
Reuters announced, the Wren House bid was apparently lower than others, but provided better general terms.
NSMP – which was established in 2012, has interests in and manages four large scale natural gas transportation and processing assets on all sides of the North Sea, involving a 67 percent operated interest in the Shetland Island Regional Gas Export System pipeline and a 100 percent operated interest in the Frigg UK pipeline.
The Wren House statement stated that the firm was “attracted to NSMP’s core infrastructure characteristics with a strong revenue stream underpinned by long-term contracts, diversification across various North Sea gas basins within NSMP’s catchment areas, including Norway, and the potential for future growth.”
The managing director of Wren House, Hakim Drissi Kaitouni told that “NSMP’s catchment areas, in particular the West of Shetland basin, represent one of the most promising areas in terms of exploration and future developments.”
The transaction is anticipated to finish in 2018, following the receipt of merger clearance.
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